Half of pet owners have a savings account for their furry friend with £1,000 stashed away
More than half of pet owners have nearly £1,000 set aside to cover potential vet bills, new research shows.
Around 84 per cent of pet owners said they saw their pet insurance premiums rise at their last renewal date, Investec Save said.
In its survey of pet owners, 51 per cent told Investec Save that they were setting aside money each month in savings to cover any unexpected vet bills.
On average, pet owners had £963 set aside, which adds up to approximately £13.9billion held in savings accounts for potential veterinary care.
Roughly 40 per cent of pet owners said they were adding money regularly to a savings account to cover vet bills as they did not believe pet insurance would cover all the costs.
A fifth said they had had bad experiences with claims on pet insurance.
Expensive: More than half of pet owners have nearly £1,000 set aside to cover potential vet bills, research suggests
Two in five pet owners do not bother with pet insurance at all, the findings suggest, while 15 per cent said this was because their pet was uninsurable.
Around a quarter of people surveyed said they prefer to earn interest on their money rather than pay for insurance.
Among pet owners who did have insurance, 84 per cent said their premium increased at their last renewal, with 30 per cent reporting a rise of 10 per cent or more.
Over the past three years, nearly nine in ten insured pet owners said their annual premium had increased, while 38 per cent said it had risen by 10 per cent or more, Investec Save added.
Of those who do have pet insurance, 66 per cent of people surveyed said the cost was too high, while nearly a quarter said premiums kept increasing.
David Hunt, head of savings at Investec Bank, said: ‘Pets are part of the family, but the cost of caring for them can come as a significant financial shock.
‘Insurance can help some owners manage that risk, but rising premiums mean renewals need to be planned for in advance, particularly when costs can increase year after year.
‘For those without cover, or for costs that are not fully covered by insurance, savings can play an important role.
‘Vet bills can run into the thousands, especially when emergency treatment or major procedures are needed. Regular saving, even in smaller amounts, can help owners build a buffer and reduce the risk of having to rely on credit and find funds at short notice.’
Vet fee reforms
In March, the Competition and Markets Authority announced reforms to vet pricing practices after a probe.
As part of the reforms, written prescription fees are capped at £21 and practices have to publish their service prices.
Vets will also have to reveal if they are part of a large group, amid concerns that ownership of practices was unclear.
The CMA said a price comparison website would be launched to help boost competition and drive down prices faced by pet owners.
The CMA recommended the changes after an investigation found veterinary prices had been rising at nearly twice the rate of inflation.
Approximately 60 per cent of households in Britain own a pet, and the CMA said the vets sector was worth more than £6.7billion.
